Bloomberg: Tribune Creditors Appeal, Seek to Halt Bankruptcy Plan

Tribune Co. creditors, including Aurelius Capital Management, are asking U.S. Bankruptcy Judge Kevin Carey in the U.S. Bankruptcy Court for the District of Delaware to “suspend” his approval of the company’s reorganization plan and legal settlement until a “higher court” can review it, a Bloomberg article said.

The creditors said Judge Carey was wrong to approve the legal settlement that would end lawsuits against those involved in Tribune’s leverage buyout. Judge Carey’s approval would allow the company to emerge from bankruptcy protection with new owners that consists of a group of senior creditors led by Oaktree Capital Management.

The creditors are owed from debt that preceded the company’s leveraged buyout, and amounts to about $13 billion. The approved plan would allow the lenders that funded the buyout to now own the company after it emerges from Chapter 11.